A mental thought

 I was just thinking what to write about and I wanted to share a thought I had after my brother texted me today. He was thanking me for a trade that he is/was in because I had shared with him a strategy that I had/have employed from time to time - mostly when I was starting. He used that bit of knowledge with another new item and made some money. Good on him! Anyway he was asking about when to sell and I can't really help with that if I'm not the one getting into the trade because I don't know what exactly he was looking for in the trade - that is for him to offer. What I did was tell him what I thought were some support and resistance levels. So that's what I wanted to mention here - specifically a resistance level.  Often times there will be a long consolidation and then the stock slowly grinds down. Well that consolidation is likely a level - assuming there was quite a bit of volume done there. As it grinds down, whoever was long is losing money. Because human nature is what it is, people will hope with there losses (not a strategy I recommend). So as they are getting more and more into there loss time is going by and they might be hoping to break even.  This is another reason that consolidation will be resistance. Because, you see, not only was the seller getting short at that level and may want to protect it but now all of the people who are long there will be helping the short position as they sell at or near break even. All of this can cause the price to drop again. Anyway. There's a lot of psychology in much of the trading if not all of it. Not sure we can decipher it all but it is definitely another aspect of trading and is fun to indulge in thinking what other people might be thinking in order to take advantage of those opportunities or at least work them into your gameplan. Cheers all!